Categories: Business

Sri Lanka to tax foreign currency deposit interest

Sri Lanka will tax foreign currency deposits in the future in the same manner as rupee deposits through a new income tax law that will come into effect next year, a tax expert said. Non-resident foreign currency accounts are were exempted from tax as an incentive not to keep dollars earned abroad in foreign banks. Sulaiman Nishtar, Partner at Ernst and Young said under the new law, a withholding tax of 5 percent will be deducted by banks as a final tax, up from 2.5 percent. Companies will be liable at 5 percent, but it will not be final tax and will form part of the taxable income.

Clubs and associations will be charged 5 percent withholding tax on interest but, it will not be a final tax and they will have to pay tax on income at 28 percent. However foreign currency income earned from services rendered in outside Sri Lanka will be exempt up to 15 million rupees.

AddThis Website Tools
Lankanewspapers

Recent Posts

LNP – Govt. considers pact termination with over US $ 40 million compensation for fresh deal

LNP – Govt. considers pact termination with over US $ 40 million compensation for fresh deal

The government mulls termination of the current project for the construction of the Kadawatha -…

59 mins ago
LNP – Colombo Stock Exchange records landmark single-day turnover

LNP – Colombo Stock Exchange records landmark single-day turnover

The Colombo Stock Exchange (CSE) recorded a significant milestone today (27), with its total market…

3 hours ago
LNP – ‘Tourist Family’: Kollywood movie inspired by Sri Lanka’s economic crisis crosses INR 750 million worldwide

LNP – ‘Tourist Family’: Kollywood movie inspired by Sri Lanka’s economic crisis crosses INR 750 million worldwide

Tourist Family, the debut film of director Abishan Jeevinth, is proving to be 2025’s breakout…

3 hours ago
LNP – Minister Mervin Silva indicted

LNP – Minister Mervin Silva indicted

The Commission to Investigate Allegations of Bribery or Corruption (CIABOC) has filed indictments against former…

19 hours ago
LNP – UK Trade Envoy on inaugural visit to Sri Lanka

LNP – UK Trade Envoy on inaugural visit to Sri Lanka

The UK Prime Minister’s Trade Envoy for Sri Lanka, Lord Hannett of Everton, is visiting…

22 hours ago
LNP – Marine Drive to be developed ’Marine Nights, Awakening Colombo’ theme

LNP – Marine Drive to be developed ’Marine Nights, Awakening Colombo’ theme

The Cabinet has approved the proposal to develop the Marine Drive from the Kollupitiya Railway…

23 hours ago